Printer Friendly

Atlantic Petroleum announces signing of DKK5m bridge loan facility and standstill agreements.

M2 EQUITYBITES-July 24, 2019-Atlantic Petroleum announces signing of DKK5m bridge loan facility and standstill agreements

(C)2019 M2 COMMUNICATIONS http://www.m2.com

P/F Atlantic Petroleum (CPH:ATLA DKK) (Oslo:ATLA NOK) announced on Tuesday the signing of an unsecured bridge loan facility for up to DKK5m with one of its shareholders, which provides the company with additional working capital until payments from the Orlando Fiels are received.

Subject to certain conditions, the drawdown facility provides DKK2m immediately on the completion of the loan agreement and a further DKK3m will be available after the EGM set to be held at 25th July 2019.

According to the company, the facility is available for 12-months after completion of the loan agreement and repayment is due, at the latest, 18 months after completion of the loan agreement.

Also, in support of the bridge loan and the company's general refinancing efforts, London Oil and Gas Limited (LOG) and the company have entered a standstill agreement until 30 November 2019. LOG will retain the right to convert the existing convertible loan facility at the agreed strike price during the period of the standstill.

Reportedly, the terms of the existing LOG convertible loan facility are restrictive on the company's ability to seek alternate funding. However, this restriction has been lifted by LOG's administrators and they continue to be supportive of working toward a common goal of restructuring the company's debt.

As a condition of the standstill agreement, LOG has been given the right to a board observer. The LOG observer will not be entitled to any fees or voting rights.

Further, in support of the bridge loan and the company's general refinancing efforts, Betri and Atlantic Petroleum have taken up negotiations regarding a standstill agreement until 31 December 2019.

The company added that this bridge loan will allow it to manage its day to day working capital needs until the first payments of Orlando are received, at which point Atlantic Petroleum expects to secure a more sustainable capital structure to preserve value for its shareholders, including a new debt restructuring.

Given the company's current financial position, this solution is the best way forward for Atlantic Petroleum, and its shareholders, the company added.

Atlantic Petroleum participates in oil and gas joint ventures with reputable, international partners.

(EUR1.00=DKK7.46)

((Comments on this story may be sent to info@m2.com))

COPYRIGHT 2019 Normans Media Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2019 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:M2 EquityBites (EQB)
Date:Jul 24, 2019
Words:395
Previous Article:Dalent Medical announces USD1.5m from financing round plus granted patent for the Sinusleeve balloon.
Next Article:Eagle Point Income prices IPO of 1,200,000 common stock shares at USD19.89 per share to raise capital of about USD23.1m.

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters